iGate CEO Phaneesh Murthy axed on sexual harassment charge

The board of iGate Corp, an information technology outsourcing services provider, has sacked chief executive officer Phaneesh Murthy following an investigation into a claim of sexual harassment, the company said in a statement.

Information and technology outsourcing service provider iGATE has sacked President and CEO Phaneesh Murthy for not informing the company board about his relationship with a subordinate employee. Reuters

The US-listed company, which has bulk of its employees in India, has appointed Gerhard Watzinger as interim chief executive with immediate effect, the iGate statement said.

"The board's decision was made as a result of an investigation by outside legal counsel, engaged by the board, of the facts and circumstances surrounding a relationship Mr Murthy had with a subordinate employee and a claim of sexual harassment," the statement said.

This is not the first time Murthy is being charged with sexual misconduct.

Murthy was a rising star at Infosys Ltd as California-based global head of sales before leaving in 2002 after a sexual harassment lawsuit against him and the company.

The sexual harassment lawsuit was filed by his former executive secretary at Reka Maximovitch. Maximovitch had complained of sexual harassment and wrongful termination of employment. Infosys, settled the lawsuit out of court for $3 million.